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Korean J Financ Stud > Volume 47(2); 2018 > Article
Korean Journal of Financial Studies 2018;47(2):267-294.
DOI: https://doi.org/10.26845/KJFS.2018.04.47.2.267    Published online April 30, 2018.
A Study on the Social Impact Bond for Implementing the Impact Investment in Korea
Jong Won Park, Woo-Baik Lee
사회적 금융에서 임팩트투자를 위한 사회성과연계채권(SIB)의 활용
박종원, 이우백
1서울시립대학교
2한국방송통신대학교
Abstract
This paper focuses on the applications of social impact bond (SIB) in impact investment and studies how to activate it through financial market based on the existing SIB cases, especially two cases initiated in Korea. Impact Investment is an investment activity that aims to generate specific positive social or environmental effects (impacts) in addition to financial returns. Impact investment is a subset of social finance and SIB is a useful tool for implementing the impact investment. A SIB is a public-private partnership which funds effective social/environmental services through a performance-based contract, where private investors provide upfront capital for the realization of public projects that generate verifiable social or environmental outcomes and return on SIB is contingent upon the achievement of desired public projects. The first SIB was announced in the UK on March 2010 to finance a prisoner rehabilitation program. And total 44 SIBs were developed in the world as of December, 2015. In domestic market, two SIBs were developed by the Seoul government and the Gyeonggi Province government. We suggest the followings for activating of impact investment using SIB in domestic market: First of all, central to the current debate concerning impact investment using SIB is the methodology on social impact measurement and evaluation. Outcomes of impact investment are blended with financial returns and social outcomes. Thus it needs to use an evaluation model which integrates the financial and social outcomes, such as the Gamma model. Second, a social security exchange in which investors trade SIBs will be useful for activating the impact investment funding. It would be possible for a financial companies to carry out corporate social responsibility through the SIB. Even if the financial company does not participate directly as an investor in SIB, it can design and sell financial products of SIB and act as a market maker through social security exchange. Third, SIB can be interpreted as a structured derivative-linked product because its payoff is contingent upon the achieved level of social impacts. In this case, a financial company can design and issue SIBs to private investors for impact investment funding. Also, a financial company raise capitals through private equity fund or crowd funding.
Key Words: 사회적 금융,임팩트투자,사회성과연계채권,감마모형,파생결합증권,Social Finance,Impact Investment,Social Impact Bond,Gamma Model,Derivatives-linked securities


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